Student Lodgers or HMO?
11:30 AM, 27th May 2022, 4 years ago
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Hi everyone. I am lending my daughter the money to purchase a 3-bed house while she’s away studying at university.
She will/intends to rent 2 of the rooms and 1 rented in a self-contained annexe.
The question is does this make it a lodgers agreement or an HMO that requires licencing?
Many thanks
Brendon
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Member Since April 2022 - Comments: 1
4:09 PM, 27th May 2022, About 4 years ago
Hi Brendon,
The rules vary from council to council and you should check the council where the property is located, however, if your daughter will be the landlord and will be letting only 2 more lodgers you don’t need an HMO licence.
Member Since October 2020 - Comments: 1177
5:51 PM, 27th May 2022, About 4 years ago
If she own the house and lives in it then she can have up to 2 lodgers without it being an HMO.
If the annex is attached to the property, (ie part of the same building) then the occupant would probably be an excluded tenant with few tenancy rights. If its a separate building and the occupant wouldn’t be sharing any living accommodation, then they may be an AST tenant and I would suggest she buys something else.
Member Since May 2022 - Comments: 1
10:17 PM, 27th May 2022, About 4 years ago
Thanks for the reply guys.
David the out building is not joined to the house, why would being an AST put you off buying the property, does that have an impact on the HMO status
Cheers Brendon
Member Since October 2020 - Comments: 1177
5:57 PM, 28th May 2022, About 4 years ago
Letting under an AST requires a lot of administration and knowledge and the tenant would have a number of protections. Managing an AST tenancy is not something I would recommend for a student to do in their spare time. I would look around for a more traditional property where the lodger relationships are more clear cut.